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Quetzal Energy Inc. Terminates Agency Agreement and Cancels Offering

TORONTO, ONTARIO--(Marketwire - Oct. 16, 2008) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES

Quetzal Energy Inc. ("Quetzal") announces that in light of market conditions, it has terminated its amended and restated agency agreement with D&D Securities Company Inc. relating to its proposed public offering (the "Offering") of units ("Units"), each Unit consisting of one common share ("Common Share") of Quetzal and one Common Share purchase warrant ("Warrant"). Quetzal has determined not to proceed with the Offering or the listing of its common shares on the TSX Venture Exchange at this time and will consider other possible transactions and interim financing. There can be no assurance that any other transactions or interim financing will be undertaken, or if undertaken, will be completed.

About Quetzal Energy Inc.

Quetzal is a junior oil and gas company with properties in Guatemala.

Forward-looking statements

Certain statements in this press release, including those using the words "anticipated" and "expected" are forward-looking statements within the meaning of applicable securities law. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Quetzal cannot assure that actual results will be consistent with these forward-looking statements are subject to change. As noted above, there is no assurance that any other transactions of interim financing will be undertaken or completed. Unless required by applicable securities law, Quetzal does not assume any obligation to update forward-looking statements.